The survey results help solidify Indonesia’s position as the world’s leading producer of nickel, a key metal in the production of electric vehicle batteries. (Source: Pulitzer Center)

Muhammad Wafid, head of the Geology Agency at the Indonesian Ministry of Energy and Mineral Resources, said the recent discoveries indicate that there are at least 100 new locations with deposits of this type of mineral, opening up opportunities for future mining. This is a positive sign as many believe that Indonesia’s nickel reserves will be depleted in the coming years.

Last year, Indonesia produced 1.8 million tonnes of nickel, half the world's output. Exports of the commodity bring in $33.5 billion a year for the Southeast Asian nation.

The shortage of Type 1 nickel, which is used to make electric vehicle batteries, is expected to begin in 2029 and worsen the following year, Allan Ray Restauro, metals and minerals analyst at energy research firm BloombergNEF, said at the Indonesia Miner event in Jakarta in June.

Despite slowing growth in the past few years, electric vehicle sales will continue to grow for years to come, driving demand for lithium ion batteries. As a result, demand for Type 1 nickel, or high-purity nickel, the key raw material used to make these batteries, will also increase.